Washington, D.C., August 25, 2026 – On June 19, 2026, the U.S. Department of Agriculture (USDA) entered into a stipulation agreement with HK Cooperative Inc and J.H. Routh Packing Company dba Daiseyfield Procurement LLC and Routh Procurement LLC (Routh) of Sandusky, Ohio, resolving alleged violations of the Packers and Stockyards (P&S) Act. Under this agreement, Routh waived its right to a hearing and agreed to pay a civil penalty of $11,000.
A USDA investigation revealed in September 2025, Routh violated the Act and regulations by failing to notify livestock sellers of its change in identifying carcasses by tattooing. Specifically, Routh failed to notify livestock sellers how missing and extra carcasses would be handled and paid for. A review of six slaughter dates revealed 2,451 carcasses misidentified in accountings provided to livestock sellers.
In addition, the investigation revealed Routh was deducting a tare weight that was 0.75 pounds greater than the weight of the equipment. If the trolley weight is lighter than the fixed tare weight being deducted, payment to livestock sellers is affected. USDA calculated the monetary difference of $13,202 from the monies paid to the livestock sellers to monies if the tare weight was accurate and Routh made payment to livestock sellers. Misidentifying carcasses and using an inaccurate tare weight to determine payment and purporting such carcasses and weights on seller’s accounting is a violation of the P&S Act and regulations.
The Secretary of Agriculture has authority to take action against violators, including issuing cease and desist orders, suspending registrations, and imposing other remedies authorized by the P&S Act. USDA may also give alleged violators the option to waive their right to a hearing and enter into a stipulation agreement, allowing the matter to be resolved more quickly.
For more information, contact Amy Blechinger, Packers and Stockyards Division, at (202) 720-7051 or Amy.R.Blechinger@usda.gov.
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